Czarny, Mariusz Poland Unknown Project Manager Building Consultancy @ Czerwińska Nojszewska, Patrycja Poland Warsaw. Monopoly – exercises 1 Exercise (E. Czarny, E. Nojszewska, Mikroekonomia – zbiór zada ń) The monopolist’s inverse demand function is given by: P (q). Exercise (E. Czarny, E. Nojszewska, Mikroekonomia – zbiór zada ń) The price elasticity of demand for the good produced by a monopoly is equal to –3.

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This process is limited by entry and exit barriers For instance, if a company using its dominant position in a relevant market increases its prices above the level found in a competitive market, then the high level of monopolistic yield encourages market entry by potential competitors. Competition law is aimed against strategic barriers built by incumbents in their relevant markets. However, while private enforcement is popular in the US and gaining importance in Europe, the lengthiness of court suits remains a strongly deterrent for private enforcement in Poland.

Economic Approach to Counteracting Cartels

Actual prices result from negotiations among sellers and buyers. The explanation of this phenomenon may be found in the concept of co-opetition, according to which entrepreneurs are willing and should co-operate in the process of added value creation, while they should compete in the process of added value distribution in the relevant market The use of market analysis to prove the existence or lack of market effects of an alleged cartel should concentrate on three goals generally understood as the goals of a cartel.

Why are these agreements subject to the highest fines and, in some countries USA, Canada, Mexico, UKsubject to both fines as well as imprisonment?

How important is an economic analysis for the results of anti-cartel proceedings considering that they are prohibited per se, that is, absolutely and unconditionally? This fact is frequently the reason for companies to create and maintain barriers of administrative, structural or strategic nature.


Nalebuff, Co-opetition, New Yorkczarnyy. Kelly Publishers, USA This poses a warning for competition authorities that economic criteria and an economic analysis needs to be applied for an objective evaluation of the behaviour of market players. It is long since it was noted that, in a transparent market, conscious parallelism may appear as a consequence of independent decisions of businesses operating in that market concerning their prices and production volumes The European cement cartel, which operated for ten years with the support of the European Association of Cement Producers Cembureaueight national associations and 33 cement manufacturers, constitutes a good example of a precise organisation and stability of a cartel.

Calaméo – Economic Approach to Counteracting Cartels

The economics of competition law clearly differentiates between interdependence of market behaviour in an oligopolistic market and agreements between competitors that restrict competition by fixing prices, production quotas, market.

Restricting market power resulting from a dominant position or cartel requires state intervention. Business lobbying for administrative barriers is called rent seeking. Counteracting cartels in the decisions of the President of the Office of Competition and Consumers Protection The majority of the decisions csarny the Polish UOKiK, known as the Antimonopoly Office betweenconcerns the preventive monitoring of concentrations and a small percentage relates to cartels anti-competitive horizontal agreements.

Particularly important is the examination of price change predictions and an analysis whether actual prices result from the actions of competitors or from adjustment to the conduct of the price leader.

In the President of UOKiK published additional guidelines explaining the goals and application procedure of the programme.

While the effects of such parallelism may indeed be similar to those associated with agreements between competitors, however the mechanism of obtaining those results is different. Additional demand for cheaper goods nojszewdka only be satisfied subject to production increase.

This paradigm, also known to organisation and management theory, leads to the conclusion that companies operate within the limits set by market structure It is likely that the weak discipline of Polish cartels results from a general lack of social capital the inability to co-operate among Poles in various areas including, most probably, also cartel agreements.


Economic Notes and Other Materials.

How important is an economic analysis for the results of anti-cartel proceedings considering that they are prohibited per se, that is, absolu Less. It creates transparency of the market and competitors may know their prices without price collusion.

The absolute prohibition of cartels results from the fact that they lead to the monopolisation of the economy that restricts or even eliminates competition with all the negative consequences thereof. Market transparency and cartels V. His model was further developed by Heinrich von Stackelberg who presumed that one of the members of the duopoly knew that its competitor was following the principles of the Cournot model.

In reality, a conflict between business goals and competition law principles is often apparent. Particularly in the Polish economy, market dynamics causes the relevant data to be impossible to compare in the longer term because it is not long since most companies introduced electronic accounting and statistics systems that could provide such data in general, this is a period after the year Economic dimension of cartels II.

Since then 16 leniency notices have been filed with the Office. Kelly Publishers, USA Counteracting cartels in the decisions of the President of the Office of Competition and Consumers This is essential for increasing market transparency which may be facilitated by the following factors: A conclusion is drawn from the interdependence theory that conscious parallelism of decisions on prices and production quotas should not be treated as collusion and, consequently, as an illegal action subject to competition law enforcement